The Most Volatile Currency Pairs


The “most volatile currency pairs” are a beacon for opportunity and risk in the dynamic foreign exchange trading landscape. These pairs, characterized by their dramatic price fluctuations, present traders with the potential for significant returns, albeit accompanied by substantial risk. Whether you’re an experienced trader or just starting your journey in forex trading, understanding these volatile pairs is critical. So, let’s explore the most volatile currency pairs and the factors contributing to their volatility.

The term “pip” denotes the slightest price movement a currency pair can make in forex. The volatility of these movements can vary significantly among different currency pairs. On average, most currency pairs tend to move between 50 and 100 pips. However, this range can sometimes be as low as 30 pips or as high as 100 pips.

Volatile Currency Pairs

To provide a more detailed picture, let’s examine the average daily pip range for some of the most volatile currency pairs from 2014 to 2022:

– The Australian Dollar to Canadian Dollar (AUD/CAD) pair typically sees movements between 62.5 and 98 pips daily.

– The Australian Dollar to Swiss Franc (AUD/CHF) pair has an average daily range of 52.5 to 106.5 pips.

– The Australian Dollar to Japanese Yen (AUD/JPY) pair experiences movements of around 65 to 121 pips daily.

– The Euro to US Dollar (EUR/USD) pair fluctuates between 55 and 124 pips on an average day.

– The British Pound to US Dollar (GBP/USD) pair, one of the most volatile pairs, moves between 100 and 149 pips daily.

– The US Dollar to Japanese Yen (USD/JPY) pair typically sees movements between 58 and 120.5 pips daily.

It’s important to note that these values are approximations and can change based on market conditions. The most frequently traded and volatile currency pairs, such as EUR/USD, USD/JPY, GBP/USD, USD/CHF, AUD/USD, and USD/CAD, have an average daily movement of about 40-120 pips. Various factors, including economic news releases, geopolitical events, and market sentiment, can influence this volatility.

G10 Currency Pairs

The G10 currency pairs comprise the ten most commonly traded and easy-to-exchange currencies worldwide. Here they are:

  1. United States dollar (USD)
  2. Euro (EUR)
  3. Japanese yen (JPY)
  4. Pound sterling (GBP)
  5. Swiss franc (CHF)
  6. Canadian dollar (CAD)
  7. Australian dollar (AUD)
  8. New Zealand dollar (NZD)
  9. Swedish krona (SEK)
  10. Norwegian krone (NOK)

These currencies are often traded in a big market, and their global exchange rates don’t change much. They’re also some of the most accessible forex pairs to trade, meaning you can buy or sell them without causing significant changes in their exchange rates. Because they’re so popular, most of the leading forex pairs are made up of G10 currencies.

  • 2023-10-21